Swiss drugmaker Novartis has announced that it is planning to complete the 100% separation of its eye care business, Alcon, on 9 April 2019.
On February 2018, the planned 100% spin-off of Alcon eye care business has been approved at the Annual General Meeting of shareholders of Novartis.
In June 2018, Novartis first announced its intention to spinoff the eye care division into a separately-traded standalone company to enable both businesses to focus fully on their respective growth strategies.
Novartis said that certain important conditions precedent for the 100% spin-off of the eye care business have been met, including receipt of certain necessary authorizations and rulings.
On 9 April, the transaction will be completed via distribution of a dividend in kind to Novartis shareholders and ADR (American Depositary Receipt) holders.
As part of the distribution, each Novartis shareholder will secure one Alcon share for every five Novartis shares / ADRs they hold on 8 April 8, after closing the business.
Subject to customary conditions, SIX Exchange Regulation has approved for the listing of the shares of Alcon on the SIX Swiss Exchange (SIX) pursuant to the International Reporting Standard.
Alcon also secured authorization for the listing of shares on the New York Stock Exchange (NYSE).
The company has received debt financing of $3.5bn via group of banks. In addition, the Alcon credit rating is said to be investment grade following the spin-off.
Based in Fort Worth of Texas, Alcon is a global medical company specialized in the development of eye care products.
The company’s treatments can be used to treat conditions such as cataracts, glaucoma, retinal diseases and refractive errors. Alcon operates two businesses, including surgical and visioncare
Alcon’s surgical portfolio is comprised of technologies and devices for cataract, retinal, glaucoma and refractive surgery, as well as advanced technology intraocular lenses (ATIOLs) to treat cataracts and refractive errors such as presbyopia and astigmatism.
The firm’s vision care portfolio is comprised of daily disposable, monthly replacement and color-enhancing contact lenses for comfortable and convenient vision correction options.